FTC Warns College Students of Pyramid Schemes


The Federal Trade Commission is warning college students of an alleged scam that targets their financial weaknesses.

According to Consumer Education Specialist Alvaro Puig, college students can often be the subject of pitches to make “serious money” in several fields. The most recent operation involves energy drinks.

The FTC recently filed a complaint against the company alleging that Vemma is running an illegal pyramid scheme. The operation can often target college students according to officials.

Experts say similar operations can be spotted by looking at what your sales goals are. Recruiting more people into the program as opposed to selling more product can indicate a pyramid scheme. 

The company running the operation can also encourage its employees to purchase the products themselves. Pyramid schemes can also make promises of providing employees with lavish incentives.

The Federal Trade Commission says these situations can be avoided by learning which questions to ask during job interviews.